Pakistan Economy - News & Updates - Archive

[Neo]

‘Rs 75bn fund to help PSO pay debts’​

KARACHI: A Rs 75 billion fund is being set up to bail out Pakistan State Oil (PSO). The Chairman Federal Board of Revenue (FBR) Ahmed Waqar said this while addressing the members of Korangi Association of Trade and Industry (KATI) at a luncheon meeting on Saturday. He said that the fund would be established by the end of this month to help PSO pay its debts and to make payments to refineries.

Waqar said that efforts were being made to bring wholesale, retail and services sectors into the tax net. He said that revenue collection would remain between Rs 1.3 trillion and Rs 1.36 trillion in the current year.

He said that FBR was considering paying surcharge along with sales tax refund on failing to pay refund in time. He announced establishing a FBR helpdesk at the premises of KATI. Chief KATI Mian Zahid Husain said that tax slab on turnover of small industries should be levied at a uniform rate of 25 percent. He appealed to the FBR chief to withdraw withholding tax on electricity bills. He said that this tax was unjustified as business community was already overburdened because of ever-increasing power rates and unbearable load shedding.

He said the tax on rental income should be revised downward to 5 percent. He suggested declaring all areas out of the limits of the Municipal Corporation as rural and un-developed areas and allowing depreciation on setting up industries there. He demanded the FBR to empower income tax commissioners to issue exemption certificates on imports as was practiced in the past.

He also suggested reduction in tax on cash withdrawal from banks to 0.1 percent from 0.3 percent. He said e-filing of Mandatory NIFT Certificates should be continued through pin code, password and user ID. He said that sales tax department had once again started audit, which should be discontinued. He said that sales tax refund claims should be settled without delay and revenue collection should be improved through enhancing the tax net.

 

[Neo]

Industrial output plunges by 4.72% in July-December​

KARACHI: The country’s industrial production slumped by 4.72 percent in the first half of the current financial year due to the downfall in the productions of auto, electronics and petroleum sectors.

A continuous slow down in large-scale manufacturing (LSM) sector is indicating a massive lay-off and shutting down of industrial units.

Analysts attributed the fall in the industrial output partly to global financial crisis and more with the domestic issues such as prolonged power outages, high cost of utilities and raw materials coupled with the high interest rates in the country.

With the reported layoffs in the auto and textile sectors, which already became the headlines, more job cuts are in the pipelines if the situation does not change in the coming months.

Data released by the Federal Bureau of Statistics on Saturday showed that petroleum sector was affected the most during the period under review, as the OCAC index – having petroleum products’ data plunged by 8.05 percent.

The Ministry of Industries index was down by 4.79 percent followed by provincial bureau of statistics index, which fell by 4.04 percent during July-December of the current fiscal.

Global financing crunch, which sent shock waves around the globe has also been hurting Pakistan in the shape of depressed demand for local exportable products. The demand shrunk due to eroding purchasing power of the customers in the west.

However, the industry people said slow down in the industrial production is only because of domestic problems, which can be easily solved. They said current situation demands immediate attention of the government to arrest the decline in the industrial production.

For instance, the countries, facing decrease in their industrial output are taking various measures such as the interest rate cut. But Pakistan upheld its interest rates despite improving economic indicators.

State Bank of Pakistan (SBP) in its last monetary policy kept the policy discount rate unchanged at 15 percent, which business community believed is too high to be absorbed by the industry.

The sector-wise production indicated that production of jet fuel was down by 9.56 percent, kerosene oil 12.59 percent, high-speed diesel 3.53 percent, furnace oil 9.63 percent, LPG 19.09 percent etc.

In food sector, the production of vegetable ghee declined by 13.07 percent, cooking oil 4.79 percent, wheat and grain milling 10.62 percent, beverages 4.30 percent etc.

In auto sector, truck production was down by 15.74 percent, buses 45.76 percent, jeeps and cars 45.37 percent, motorcycles 15.66 percent etc.

Production of refrigerators dropped by 1.18 percent, deep-freezers 23.90 percent, air-conditioners 13.75 percent, electric bulbs 24.44 percent, electric tubes 19.56 percent, fans 9.24 percent, motors 23.48 percent, electric meters 12.30 percent, switchgears 11.30 percent, transformers 4.36 percent, TV sets 33.99 percent and bicycles 12.67 percent.

 

[Neo]

Spending on PSDP declines by 64.8 percent in first half ​

* Non-development expenditure up by 25.1% over last year​

ISLAMABAD: Current expenditure during the first half of current fiscal year rose by 25.1 percent over the same period of last year, but development expenditure fell by 64.8 percent, according to figures obtained from Ministry of Finance.

Thus, the government has failed to meet its target of keeping its non-development expenditure at the level where it was in the last financial year. According to an official, actual current expenditure has been recorded at Rs 970 billion, which is higher by Rs 195 billion or 25.1% than last year’s current expenditure of Rs 775 billion. During a recent meeting of members of the National Assembly Standing Committee on Finance at parliament house was of the view that route cause of increase in non-development spending was due to gigantic size of federal cabinet.

On the other hand, Public Sector Development Programme (PSDP) has faced a major cut and total spending on development programme has been recorded at Rs 125 billion in Jul-Dec period as against PSDP expenditures of Rs 206 billion in same period of last fiscal year, indicating a decline of 64.8%.

Development expenditures from PSDP and out of the PSDP were estimated at Rs 438 billion for 2008-09 and were revised downwards at Rs 399 billion afterwards. The target was to spend Rs 135 billion on development during first half of the current fiscal year, but actual development spending has been recorded at Rs 125 billion only.

According to the official, the government without having sufficient financial resources announced highest ever public sector development programme worth Rs 541 billion for this fiscal year with federal PSDP at Rs 371 billion. However, during the first quarter finance ministry decided to cut PSDP by Rs 100 billion to so that its size matched available financial resources. The government is now aiming at accelerating releases for development programme in second half (January-June) period of current fiscal year as it claims that financial resource availability has improved.

Mid Term Economic Review of finance ministry states that the fiscal improvement in the first half has largely based on reduction of oil subsidies and a cut in development spending. All meaningful efforts to expand revenues, particularly by broadening the tax base, will only work in the medium-term.

The faster growth of 35.5 percent in the total revenues is more than offset by even faster growth of 25.2 percent in the current expenditure. The financing patterns of fiscal deficit remained dominated by the banking system that financed 66 percent of the fiscal deficit. Only 29 percent was financed by non-bank sources. A small amount of Rs 12 billion that the government had received from external sources was also used to finance the deficit.

 

[Neo]

China to provide $449m as supplier's credit for Neelum-Jhelum project​

* WAPDA chairman says project to inject 969MW power into national grid​

ISLAMABAD: A meeting presided over by President Asif Ali Zardari was informed on Saturday that China has agreed to provide $449 million as supplier’s credit for the Neelum Jhelum hydroelectric project and an agreement to this affect will be inked by May this year.

The meeting was held to review the progress on various developmental initiatives between Pakistan and China ahead of the president's forthcoming visit to China on February 20. The initiatives reviewed at the meeting pertained to the energy and power; agriculture; information technology and telecommunications; petroleum and natural resources; commerce; defence; and the banking sectors. During the meeting, representatives of various ministries and organisations presented detailed reports on the status of ongoing cooperative development projects and the initiatives undertaken between the two countries during the president’s visit to China in October 2008.

More power: WAPDA Chairman Shakeel Durrani said the Neelum-Jhelum Hydroelectric project would inject 969MW power into the national grid. He said a letter of intent had been issued to a Chinese company to build the over-$2 billion 1,100MW Kohala power project on build, operate and transfer (BOT) basis. He said a detailed feasibility and engineering drawing for the Kohala power project would be ready by August.

Following the briefings, the president emphasised the need for stepping up efforts to utilise Chinese experience regarding power generation; agriculture; and water usage. He said water and power shortage issues would continue to haunt countries like Pakistan for the near future, saying efforts must be increased to reduce this. He said the water shortage issue would likely have a profound impact on inter-state and intra-state relations.

In addition to the president and the WAPDA chairman, Defence Minister Chaudhry Ahmed Mukhtar; Special Adviser to the Prime Minister on Water Resources Kamal Majidullah; Special Envoy to China Khalil Ahmed; secretaries and senior officers of Foreign Affairs, Industries, IT and Telecom; and chairmen of the Board of Investment and PARC attended the meeting. Ambassador of China to Pakistan Luo Zhaohui also attended the meeting by special invitation.

 

[Neo]

UK to provide 480 million pounds for social uplift ​

LAHORE (February 15 2009): Britain will provide 480 million Pounds for social uplift with a focus on poverty alleviation in Pakistan during the next three years, said British Deputy High Commissioner Robert W. Gibson on Saturday. He was talking to Business Recorder at a function organised by Moody's International on fostering trade and investment and to acknowledge contribution of British companies in Pakistan.

Robert, who is also Director of UK Trade and Investment in Pakistan, said a global solution was needed to overcome global recession. On much-needed market access for Pakistan in the West, the British envoy said Britain would certainly want to have such an arrangement with Islamabad. However, being part of the European Union (EU), Britain was bound to the decisions of Brussels on any such facility, he added.

Robert shared proudly that 100 British companies, with an investment portfolio of 1.7 billion dollars, were operational in Pakistan for the last four years. According to him, Pakistan, with a population of 170 million, is a market with huge potential and the UK is keen to invest further here. "Pakistan has excellent regulatory regime for investors," he said, adding: "My job is to identify opportunities."

He further said that Britain was determined to retain liberal trade markets, and added that a good number of UK companies were keen to invest in different sectors in Pakistan. On travel advisory, the UK Deputy High Commissioner said the British investors could travel to Pakistan comfortably, except a few troubled areas.

Earlier addressing the gathering, Robert said the British government through the UK Trade and Investment (UKTI) was keen to discuss new business ideas and opportunities for both British companies and Pakistani companies. For this purpose, Moody's International had stepped forward to facilitate an elite business gathering to facilitate discussion about new opportunities and ideas among business comrades, he added.

Speaking on the occasion, Chief Executive Officer (CEO) of Moody's, Pakistan, Rashid Mehr insisted upon the UKTI to work in three key areas - public and private partnership between British and local companies, encourage key British businessmen to explore the hidden potential of Pakistan in the areas of oil and gas, power, textile, pharmaceutical, food and agriculture and information technology sectors.

He also said the UKTI should find out ways to facilitate and make genuine businessmen visa application process faster. He said: "It is indeed not a secret that the recent collapse of national economy and global recession has forced many of us to find ways to battle it out."

It may be mentioned that Moody's International is a Global British firm, established in 1911, presently operating in more than 80 countries and is a symbol of financial discipline and strength. Moody International is the premier certification body and inspection company in Pakistan and world-wide. Moody's has the credit of assisting and certifying over 1,200 Pakistani companies against various certification standards.

 

[Neo]

Exclusive economic zones ​

Prime Minister's Adviser on Finance Shaukat Tarin in his talks in Tokyo has requested Japanese Prime Minister Taro Aso to establish Japanese exclusive economic zones in Karachi and Gwadar, in preference to any monetary help Japan may extend to Pakistan to overcome its financial crisis, according to a message received in Islamabad from Tokyo. He has further informed the Japanese authorities that Pakistan wishes to develop its agriculture, manufacturing and energy sectors with Japanese assistance.

He has also discussed with them Pakistan's strategic needs such as development of water resources, roads, railways and poverty reduction. Tarin has said that as Pakistan's status as a frontline state in the war against terrorism has badly affected its economy, it is in need of annual aid of five billion dollars for approximately three to five years.

Answering a question, Tarin said Pakistan's total local and foreign loan was 46 billion dollars, and efforts were being made to reduce the current budgetary deficit, as well as to bring down inflation. The growth rate for the current year would be 3.5 percent, though during the next financial year it could reach up to five percent. The wide-ranging agenda of development Pakistan plans to undertake mirrors the government's resolve to put the economy back on the path of rapid progress.

However, of immediate concern to the country is Tarin's offer to Tokyo to set up exclusive Japanese economic zones in Karachi and Gwadar. It will be recalled that Pakistan had last year offered to Japan to set up a special economic zone for Japanese business companies, on the pattern of a similar facility established for the Chinese entrepreneurs at Lahore. The proposed site for the offer was Karachi, to which Tarin has now added Gwadar, in an astute move to attract Japanese investment.

The two locations are obviously ideal for both local and foreign investment. Being the fourth largest investment partner of Pakistan, Japan has always been given special attention by Pakistani authorities, though a delegation of Pakistan-Japan business forum had informed the government last year that the volume of Japanese investment primarily depended on Islamabad's quick and friendly response in ensuring fruition of all bilateral investment and trade agreements.

This was an indication of paucity of investor confidence due largely to procedural bottlenecks, which need to be speedily removed by the government through well-targeted measures. Secondly, there is a need to devote special attention to infrastructure and HR-based skill development in the country. In fact these are the major causes of our being left behind in the race for economic development. The plan to make Gwadar port a vibrant hub of regional energy and trade corridor is a move in the right direction.

Tarin's offer to set up an exclusive Japanese economic zone in Gwadar has the potential to help the mega project's full operationalization, which can yield rich dividends for the economy. He has claimed that Pakistan's economy is stabilising after the shock of high oil and food prices, though we believe that the crisis has not receded to such an extent as to inspire hope of an early recovery. This will continue to make negative impact on the economy.

Many analysts believe that Pakistan should attach short-term priority to attracting investment to foreign exchange earning sector, or at least to both the foreign exchange-earning sector and other sectors simultaneously. This is particularly important because there have been many impediments to foreign investment in Pakistan, including a precarious law and order situation, lack of political and social stability, the crippling energy crisis, and the high cost of doing business in Pakistan.

There is clearly a need to improve the business environment significantly for Pakistan to be able to attract a larger share of FDI. If the law and order situation is not improved early it will make a highly negative impact on the future inflows of FDI. There is, therefore, a need to adopt a multi-faceted strategy to create a peaceful environment, which is an essential prerequisite to attract FDI.

Japan's initiative to invite the "Friends of Pakistan" to a meeting in March or early April to get financial commitment from them to support development, and thereby strengthen Pakistan government's hands in its fight against terrorism, needs to be appreciated. Tarin's offer to Japan to establish exclusive economic zones in Karachi and Gwadar is a reciprocal move, which should further cement the bilateral bonds of friendship between the two countries. The government should back up the offer with solid initiatives to facilitate the prospective investors.

 

[Omar1984]

Surplus wheat may lead to collapse of prices


By Sajid Gondal

ISLAMABAD, Feb 14: Availability of surplus wheat in the country could lead to collapse of prices in local markets this year.

The government has approved a plan to procure 6.5 million tons of wheat at Rs950 per 40kg, or Rs23,750 (nearly $300) per ton, which is about $100 higher than the rates prevailing in the international market.

In the London commodity market, French and Russian wheat was offered on Saturday at $198 to $203 per ton while the US soft red winter wheat was sold at $202 to $206.88 per ton. The prices are likely to fall further after beginning of harvesting in most wheat-producing countries in March.

The government’s wheat stock position is good enough to meet local demand till April. As of Friday, Punjab had 1.1 million tons of wheat, Sindh 50,000 tons, the NWFP 184,000 tons and Balochistan 65,000 tons. These quantities didn’t include stocks with the private sector.

Some 590,000 tons of imported wheat began arriving at the Gwadar port on Friday. This process would continue until March 5.

The Trading Corporation of Pakistan would complete import of another 272,000 tons of wheat by March 31. The World Food Programme would also provide 30,000 tons of wheat it had borrowed from Pakistan last year.

Thus, a total of 892,000 tons of wheat is due to arrive by March. The government has already completed import of 1.7 million tons of wheat while the private sector had imported 250,000 tons of wheat in January.

The government will have 2.29 million tons of wheat in its stock for consumption in March and April whereas the harvest of new crop will begin in Sindh on March 1 and in Punjab on April 1.

Ibrahim Mughal, the Chairman of the Agri-Forum Pakistan, has called for an increase in procurement target from 6.5 million tons to eight million tons so that small growers could also sell wheat to the government.

He suggested that Punjab should buy four million tons of wheat, Sindh 1.5 million tons and Passco 2.5 million tons.

Tariq Sadiq of the Flour Mills Association said the government had announced the wheat procurement price in haste, without taking international prices and local stock position into consideration.

Additional Secretary of the Ministry of Food and Agriculture Shahid Hussain Raja agreed that price in the local wheat market could decline sharply, but said this would not affect the government’s procurement drive.

He said a high procurement price had been fixed by the government to ensure that the growers got a good return on their crop this year.

Surplus wheat may lead to collapse of prices -DAWN - Top Stories; February 15, 2009

With this much wheat being produced in Pakistan and also being imported into Pakistan, no one in Pakistan should go hungry.

 

[Omar1984]

Railways in financial crisis


By Zaheer Mahmood Siddiqui

LAHORE, Feb 14: The Pakistan Railways (PR) does not have enough funds to buy fuel to keep trains running beyond Sunday, officials told Dawn on Saturday.

We only have Rs869.38 million for payment to the Pakistan State Oil for procuring high-speed diesel and TBN-13, but this amount will not be sufficient even for trains operations on Sunday, a senior railways official said.

The PR had been allocated Rs7.2 billion for fuel purchase.

Our estimate (submitted to the finance ministry) was prepared on the basis of the prevailing price for diesel in May and June in 2008. The fuel price increased exorbitantly in September and subsequent months. We prepared a revised demand along with justifications to the ministry during November last year and have since sent at least two reminders, the official said.

The revised demand of Rs12,151.836 million included Rs4,951.836 million for fuel purchases.

The official said the ministry had allowed the railways to spend up to Rs1,000 million a month.

Meanwhile, the railways’ financial adviser and chief accounts officer (FA&CAO) asked all accounts and finance officers not to entertain any bill or payments except salary and allowances, pensions, utility bills or buying fuel and lubricants.

This amount is not even sufficient to ensure a smooth supply of fuel for rail operations. There is a need to allow railways’ officials to clear PSO bills beyond allocated funds without interruption till additional funds, amounting to Rs4,951.836 million under the operational fuel head, were released upon receipt of funds from the finance division to avoid any interruption in train operations, he said.

However, a senior audit officer argued that the increase in fuel price was not the only factor affecting railways’ finances.

Irregular and/or extra consumption of fuel is a major factor, which is why fuel remained second highest component of operating expenses. The railways spent Rs6.567 billion or 32.45 per cent of the total operating expenses for 2006-07.

Unnecessary delays cost a lot of fuel: Locomotives held up at stations needlessly burn fuel, besides causing train delays. Locomotives stalled in yards and train delays resulted in the loss of 770,700 minutes between May 2007 and April 2008, causing a loss of Rs776,865,600 because of staff negligence.

When passenger or freight trains are configured in yards, they are left unattended for hours; Operating mismanagement causes unnecessary fuel consumption of 338,680 litres of fuel, valuing Rs13,547,200 at the rate of Rs40 per litre from Jan 1 to June 9 this year, said the audit officer.

Railways in financial crisis -DAWN - Top Stories; February 15, 2009

 

[Omar1984]

Islamabad stocks gain 15.36 points

ISLAMABAD: Investors at the Islamabad stock market went for across-the-board scrips during the week, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index increased by 15.36 points to close at 1,239.86 points as against the previous week’s close of 1,224.50 points. The ISE index remained negative for three days (February 9, 10 and 12) and remained positive for two days (February 11 and 13). Total volume of transactions stood at 7.51 million shares while it was 8.077 million shares last week, showing a net decrease of 0.56 million shares or 6 percent. The minimum transaction in the outgoing week was recorded on Feb 12 when the market reached 0.939 million shares and the index decreased by 2.66 points to close at 1,181.33 points from the previous level of 1,183.99 points. The maximum transaction in the outgoing week was 1.714 million shares while last week it was 2.709 million shares. The maximum decrease in share price of a company was observed in Unilever Pakistan, the price of which decreased by Rs 39 on Feb 9 when the index decreased by 4.74 points. The maximum price increase in share of a company was of Pakistan Petroleum, which increased by Rs 7.50 on Feb 13 when the Index increased by 58.52 points. staff report

Daily Times - Leading News Resource of Pakistan

 

[Omar1984]

FPCCI concerned over trade imbalances

KARACHI: The main reason for imbalances in the trade deficit is due to the sharp increase of import bills of wheat and power generating machinery, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Sultan Ahmed Chawla said Saturday. He said due to the sharp decline in the world crude oil prices, the country’s oil import bill has come down from its higher level. “It helped in bringing down the ballooning trade deficit but the government should try to reduce the trade deficit by boosting exports and cutting the import bills through import substitution and higher tariffs on luxury imports.” The trade imbalance for July-January 2008-09 stood at $10.7 billion as compared to $10.3 billion recorded for the corresponding period previous year. Whereas, the target deficit was $7.0 billion. staff report

Daily Times - Leading News Resource of Pakistan

 

[Omar1984]

Gems industry a precious asset of Pakistan F.P.Report

PESHAWAR: Pakistan can earn million of dollars by exporting its precious gemstone after value addition. This was stated by Shaukat Khan, Town Nazim Peshawar after formally inaugurating the 4th Gem Bazaar organized by Pakistan Gems and Jewelry Development Company (PGJDC) at its Gems Exchange at Khayal Arcade, Namak Mandi here on Sunday. The “Gem Bazaar” was the fourth of its kind in city, which has provided an opportunity and platform for the traders in the business of gemstones and mineral specimen. Around 60 exhibitors have displayed their gemstones and mineral specimen for the interested buyers in the ‘Bazaar’. A variety of gemstones and mineral specimen were displayed under one roof, where buyers had the maximum exposure to a wide range of quality display. Fawad H. Khan, Chief Executive Officer, PDJDC in his press statement issued here on Sunday has said that “Gem Bazaar” was organized in a professional manner, which has left the impression of ensuring high security and transparency in precious stones trading. The Gem Bazaar would be a regular feature which will contribute immensity to the continuous efforts that PGJDC is putting in for the development of Gems and Jewelry industry of Pakistan, he added. He said such initiatives by the Company will boost confidence, motivation and trust on PGJDC’s for the development of the gemstones industry. It will further enhance the value chain productivity of the sector, which will also enable the miners to rise above unnecessary exploitation and deprivation from direct trading he said and adding that the interested buyers will be exposed to quality products on competitive prices, which will add tangible value to their business endeavors.

The Frontier Post

 

[Omar1984]

Pakistan sells three-month treasury bills worth $1.95b
Bloomberg
Published: February 11, 2009, 22:55

Karachi: State Bank of Pakistan sold Rs155.2 billion ($1.95 billion, Dh7.28 billion) of treasury bills as part of the country's borrowing program.

The central bank sold Rs50.8 billion of three-month bills at 13.62 per cent and Rs51.9 billion of six-month bills at 13.87 per cent, according to a statement today by the Karachi- based State Bank of Pakistan. The bank also sold Rs52.5 billion of 12-month bills at 13.9 per cent.

Treasury-bill auctions indicate the central bank's stance on the lending rate to commercial banks. The State Bank auctions treasury bills twice a month.

Pakistan's rupee rose for the first time in five days against the US dollar after the government said the trade deficit narrowed by almost half in January. Bonds were unchanged.


The currency strengthened 0.3 per cent to 79.05 per dollar in Karachi. The benchmark 9.6 per cent bond due August 2017 yielded 15.70 per cent.

Pakistan's trade deficit shrank 43 per cent as imports fell faster than exports. The trade gap dropped to $1.17 billion from $2.06 billion a year ago, according to data from the Federal Bureau of Statistics in Islamabad.

Gulfnews: Pakistan sells three-month treasury bills worth $1.95b

 

[slugger]

Some bottled water makers playing with masses health: PEW

The Pakistan Economy Watch (PEW) has said that some local and multinational manufacturers of bottled water were marketing substandard products playing with the health of millions of people.

Its demand is growing by 22 per cent (200 billion liters last year) that has made it the most profitable sector luring many and pushing some manufacturers to set aside quality control procedures to speed up production and boost profits.

Speaking at a meeting regarding water scarcity and corporate practices here on Sunday, President PEW Dr. Murtaza Mughal said that there is a need for effective drinking water disaster management system. Cancellation of licenses and slapping heavy fines to discourage substandard production may help.

The government or private sector has no plans for recycling of used plastic bottles which is adding to environmental hazards.

He said government can also initiate a massive program to provide safe drinking water to masse. It will save them from corporate clutches.

On the occasion, PEW Vice Chairman Muhammad Akram Shahid said that many take bottled water as status symbol while majority view it as safe for consumption. Parents are mixing the so-called ‘mineral water’ in baby formula exposing their newborns to great risks. 80 per cent of all infectious diseases are water related and over 200000 children die every year due to it in Pakistan.

Dust, fungus and plastic particles have become part of supplies and arsenic level is going unchecked. Ignoring corporate social responsibility is hurting health of masses and the limping hospitality industry.

The idea of privatization of drinking water is inconsistent with common sense but it is thriving due to scarcity of clean drinking water in Pakistan. Our water quality has been ranked 80th in the world as over 70 per cent of water supplied is insufficient for drinking.

Pakistan is a big market for multinational and national companies but questions are being raised about quality and impact of this business on subsoil water and environment. Unfortunately, these issues are yet to catch the eye of officials concerned, said Muhammad Akram Shahid.

In 2005, the Standards and Quality Control Authority declared that only 27 out of 200 companies selling bottled water maintain stipulated standards. A UNESCO research carried out in Sindh says groundwater extraction is exceeding the renewable volume creating serious problems.

Government should immediately frame effective laws and initiate a detailed study. It should enforce and monitor stringent quality control measures.

 

[Omar1984]

KSE market capitalization up Rs1 bln this week

Updated at: 1820 PST, Saturday, February 14, 2009

KARACHI: Market capitalization at Karachi Stock Exchange recorded Rs1 billion surge during this week.

According to figures released by KSE, the valuation of listed companies increased 0.1 percent to Rs1.766 trillion compared to Rs1.765 trillion last week.

KSE market capitalization up Rs1 bln this week - GEO.tv

 

[ejaz007]

Gas discovery at Qadirpur

KARACHI: Oil and Gas Development Company Limited (OGDCL) has made another gas discovery at Qadirpur deep well no 1 in district Ghotki. According to a notice issued by Karachi Stock Exchange (KSE) on Monday, the initial gas production has been gauged at 4.28mmcfd. The company has made 84 discoveries so far. With this discovery, the gas production of OGDC will increase further. At the end of January, OGDC’s production of gas stood at 972 mmcfd. staff report

Daily Times - Leading News Resource of Pakistan